Wisconsin AB 495: Relating to: general equalization aids, supplemental hold harmless aid, the per pupil adjustment for school district revenue limits, and making an appropriation. (FE)

Bill Text

2025 - 2026 LEGISLATURE LRB-4705/1
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2025 ASSEMBLY BILL 495
October 9, 2025 - Introduced by Representatives FITZGERALD, TAYLOR, ANDERSON,
ANDRACA, ARNEY, BARE, BILLINGS, BROWN, DESANTO, DESMIDT, DOYLE,
EMERSON, GOODWIN, HAYWOOD, HYSELL, JOERS, JOHNSON, KIRSCH, MAYADEV,
MCCARVILLE, MCGUIRE, MIRESSE, MOORE OMOKUNDE, NEUBAUER, ORTIZ-
VELEZ, PALMERI, PRADO, RIVERA-WAGNER, ROE, SHEEHAN, SINICKI,
SNODGRASS, SPAUDE, STROUD, STUBBS, SUBECK, TENORIO and UDELL,
cosponsored by Senators ROYS, DASSLER-ALFHEIM, DRAKE, HABUSH SINYKIN,
HESSELBEIN, L. JOHNSON, KEYESKI, PFAFF, RATCLIFF, SMITH, SPREITZER and
WALL. Referred to Committee on Education.
AN ACT to repeal 20.255 (2) (ab), 121.105 (5) and 121.91 (2m) (j) 2.; to
renumber and amend 121.91 (2m) (j) 2m.; to amend 20.255 (2) (ac), 118.40
(2r) (e) 2p. a., 121.905 (3) (c) 6., 121.905 (3) (c) 9., 121.91 (2m) (j) 3., 121.91 (2m)
(r) 1. b. and 121.91 (2m) (s) 1. b.; to create 20.255 (2) (ab), 121.105 (5) and
121.91 (2m) (j) 2m. b. of the statutes; relating to: general equalization aids,
supplemental hold harmless aid, the per pupil adjustment for school district
revenue limits, and making an appropriation.
Analysis by the Legislative Reference Bureau
Current law generally limits the total amount of revenue per pupil that a
school district may receive from general school aids and property taxes in a school
year to the amount of revenue allowed per pupil in the previous school year plus a
per pupil adjustment, if any, as provided by law. Current law, which was upheld in
LeMieux v. Evers, 2025 WI 12, provides an annual $325 per pupil adjustment until
2425. Under this bill, beginning in the 2025-26 school year, the per pupil
adjustment is the per pupil increase for the previous school year as adjusted for any
increase in the consumer price index.
The bill also increases the amount of funding distributed to school districts as
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SECTION 1
state aid through the equalization formula by $493,800,000 in the 2025-26 school
year and by $699,900,000 in the 2026-27 school year. Under current law, a school
district is guaranteed an amount of general equalization aid equal to at least 85
percent of the amount it received in the previous school year.
The bill also provides an additional $31 million for additional aid to ensure
that each school district receives total state aid in the 2025-26 school year in an
amount that is no less than what it received in the 2024-25 school year. Specifically,
under the bill, if the estimated total amount of state aid for a school district in the
2024-25 school year, as calculated on October 15, 2024, is greater than the
estimated total amount of state aid for a school district in the 2025-26 school year,
as calculated on October 15, 2025, the Department of Public Instruction must pay
the school district additional state aid in an amount necessary to ensure the school
district receives an amount of total state aid in the 2025-26 school year that is equal
to the amount calculated on October 15, 2024. The additional aid is considered
state aid for purposes of school district revenue limits.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 20.005 (3) (schedule) of the statutes: at the appropriate place,
insert the following amounts for the purposes indicated:
2025-26 2026-27
20.255 Public instruction, department of
(2) AIDS FOR LOCAL EDUCATIONAL PROGRAMMING
(ab) Supplemental hold harmless aid GPR A 31,000,000 0
SECTION 2. 20.255 (2) (ab) of the statutes is created to read:
20.255 (2) (ab) Supplemental hold harmless aid. The amounts in the
schedule for payments to school districts under s. 121.105 (5).
SECTION 3. 20.255 (2) (ab) of the statutes, as created by 2025 Wisconsin Act
.... (this act), is repealed.
SECTION 4. 20.255 (2) (ac) of the statutes is amended to read:
20.255 (2) (ac) General equalization aids. The amounts in the schedule for the
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SECTION 4
payment of educational aids under ss. 121.08, 121.09, 121.095, 121.105 (2) to (4),
121.137 and subch. VI of ch. 121.
SECTION 5. 118.40 (2r) (e) 2p. a. of the statutes, as affected by 2025 Wisconsin
Act 15, is amended to read:
118.40 (2r) (e) 2p. a. Add the amounts appropriated in the current fiscal year
under s. 20.255 (2), except s. 20.255 (2) (ab), (ac), (aw), (az), (bb), (dj), (du), (fc), (fm),
(fp), (fq), (fr), (fu), (k), and (m); and s. 20.505 (4) (es); and the amount, as determined
by the secretary of administration, of the appropriation under s. 20.505 (4) (s)
allocated for payments to telecommunications providers under contracts with
school districts and cooperative educational service agencies under s. 16.971 (13).
SECTION 6.